India and the United States have commenced formal drafting of a bilateral trade agreement, progressing through five rounds of negotiation so far. Unlike conventional free trade deals that employ most-favoured-nation tariffs, this pact is being structured differently, with reciprocal tariff commitments rather than standard WTO MFN terms. 
A US delegation is likely to visit India in the near future to carry forward discussions, signaling both governments’ intent to finalise key elements.

India’s Commerce Minister emphasized that New Delhi will not be rushed into signing under pressure or deadlines, underscoring a long-term view of trade deals rather than reactive decisions. Major issues at play include agriculture, access to goods and services, and the US’s increasing use of Section 232 tariffs. The negotiations offer India an opportunity to safeguard interests while deepening a strategic partnership with the US. If concluded, the agreement could reshape bilateral trade frameworks and set a precedent for future India-US economic cooperation—yet India remains clear it will move only when its red lines are respected.